The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Act) has introduced several changes in Australia, including by placing limits on the use of fixed and maximum term contracts (fixed-term contracts). The amendments will come into effect in December 2023.
What are the changes?
From that time, employers will be prohibited from entering into fixed-term contracts with employees, in circumstances where, among other things:
• the fixed-term contract has a term of more than two years;
• the fixed-term contract contains an option to renew for another term, such that the employee may be employed for an overall term that is more than 2 years; or
• the fixed-term contract provides for an option or right to renew or extend the contract more than once.
It will also be unlawful in some cases for parties to enter into a series of consecutive fixed-term contracts, including where the combined terms exceed 2 years, where an employee will be performing the same, or substantially similar work, under the contracts or there is a substantial continuity of the employment relationship between the contracts. Employers that contravene these provisions may be liable for civil penalties.
Are there any exceptions?
There are limited exceptions to the fixed-term contract prohibition including where an employee is engaged:
• to perform only a distinct and identifiable task involving specialised skills;
• under a contract in relation to a training arrangement;
• under a contract...
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